Exclusive: Mirae Asset Securities to Pay 10% Interest on Failed SpaceX IPO

Firm to Compensate 1.42 Billion Won for Tied-Up Funds After Allocation Failure

Mirae Asset Securities announced on the 6th that it is "strongly considering a plan to pay annual 10% passage interest to individual investors whose funds were tied up due to the failed subscription for SpaceX's initial public offering (IPO)." The compensation is estimated to amount to approximately 1.4 billion Korean won.

Passage interest refers to interest calculated and paid based on the period during which funds were tied up.

Mirae Asset Securities conducted the SpaceX IPO subscription for registered professional individual and corporate/institutional investors from June 5 to 10. The total offering amount was 1.14 billion dollars. Of this, 500 million dollars allocated to individual professional investors sold out within 1-2 minutes of the sale's start.

However, the lead underwriter Goldman Sachs did not allocate any shares to Mirae Asset Securities during the final allocation process, causing the subscription to fail. Mirae Asset Securities fully refunded the subscription deposits on the morning of June 13.

Previously, the virtual asset exchange Bybit set a precedent by paying annual 10% passage interest in a similar case. Mirae Asset Securities plans to apply the same 10% annual rate.

Calculating compensation based on the amounts deposited by individual professional investors yields approximately 1.42 billion Korean won. The $300 million deposited on June 5 was tied up for 8 days until the refund date of the 13th, while the $200 million deposited on June 8 was tied up for 5 days.

Applying the annual 10% rate on a daily basis, the $300 million portion accrues 657,534 dollars, and the $200 million portion accrues 273,973 dollars. The total of 931,507 dollars, when converted using the exchange rate at the time of refund (1 dollar = 1,524.8 Korean won), amounts to approximately 1.4204 billion Korean won.

A Mirae Asset Securities official stated, "We deeply regret the inconvenience caused to customers awaiting subscription results. We will do our best to protect investors and provide stable services."

Meanwhile, the Financial Supervisory Service has initiated an inspection into Mirae Asset Securities regarding this incident. Lee Chan-jin, head of the Financial Supervisory Service, recently said at a press briefing, "We never imagined such an incident could occur," and added that the inspection will determine whether the issue stemmed from communication failures by the lead underwriter or other factors.

Mirae Asset Securities is also considering legal action if it determines that unfair treatment contributed to the allocation failure. Regarding Bloomberg's report, which claimed that a misunderstanding of the order submission process resulted in no shares being allocated, the company plans to hold Bloomberg accountable for legal responsibility.